Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1887-05-27

we'll in 1866 as in 1880 and 1881. TIL,
! business to be done by railways has in
creased, but there are more railways to de
it. Rates have everywhere diminished
| OF the New York Central system, neither
the Lake Shore nor Michigan Central mol
Canada Southern had at the beginning o.
this year paid dividend since 1884. Tht
New York Central and Hudson only pays
per cent.
At the end Of 1885 there were in oul
country l28, 967 miles of rail Yay, with e
total share capital of SS,8l7, 697,S32, s
total bonded debt of SO, 765, 727, o66, to-
tai unfunded debt of $3.50, los, Psi; total,
S7,S42, $50, no. The gross earnings were
SIP 56S, S33, or nearly 10 per cent. of the
entire capital. The net earnings were
S269, 493, 93I, or nearly So per cent.
The average interest paid on the bonded
debt was only { 77-1O0 per cent, and, on
the whole, share capital as dividends WAS
only l-l00 per cent. Surely, railroad
investments are not very rem lucrative.
1t may be in truth answered that the
capital account of many railways has been
improvidently, or dishonesty, increased.
That can't now be Temedied. The pres
ent shareholders and bondholder5 are
otner than the original owners, and are
innocent persons. In the past, the rail
way managers have too often swollen the
capital account either to pay for ordIn-
airy repairs which should have been paid
from earnings, or TO personally benefit
themselves by issuing new bonds. The
managers were too grasping and selfish
in paying dividends, out those dividends
did allure foreign or domestic investors
to build new railroads. Share owners
have been to blame for tolerating dishon-
est directors, and directors have been at
fault for not directing. The courts, too,
have been remiss.
A great deal of water has been poured
into the capital stock, no doubt, but yet
the present railway system, with its ter
minnls, could not be duplicated to-day
for 7,9+2, 533, l79, unless the beginning
Of such duplication were destruction
for time Of the present system. If the
existing railways were obliterated for q
few years then, no doubt, new and
better system could, by the falling OF all
values, be built for much less money.
1t is not true that the great individual
fortunes have Gene il this county from
the natural and honest income OF invest
ments in railways. Such gigantic for
tunes as are around US have come either
from successful buying and selling OF
shares and bonds, and speculations quite
apart from earnings Of the railways, or
from immoral or unlawful contracts
made as directors in the form Of con-
struction companies and the ike, which
we're really swindles On the shareow ners,
or by paying dividends to themselves
as shareoRners cut of the proceeds Of
bonds sold Thosc colossal fortunes
have not come from monev paid by ship
pers and passengers, bu- ra,LSr out of
the stupid bondholders. The cUt nv,
as whole, has benefited by the swindles,
because they have promoted railway
building, and yet the swiudles have, nc
doubt, somewhat increased rates in order
to pay other necessary fixed charges and
dividends ca quantity of dishonesty
swollen capital stock.
As our Legislative methods up to this
time for charleli1g and dealing with rail
ways have been so faulty, there will no
doubt be needed wise state supervision OF
some sort hereafter, but federal supervis-
ion is as yet unnecessary and improper.
STATE RIGHTS.